TDS on sale of property@1%

Introduced in finance bill 2013, TDS is to be deducted on sale of immoveable property where the sale value of the property exceeds or is equal to Rs 50,00,000( Rupees Fifty lacs).

Section 194 IA states that TDS is to be deducted @1% by the purchaser of property at the time of making payment of sale consideration.Tax deducted should be deposited in government account through any of the bank branches via e payment option available at NSDL.

Procedure for depositing TDS online

1)Log in to https://www.tin-nsdl.com/
2)Click on e tds filling. Click on the option “TDS on sale of property’
3)Under TDS on sale of property, Click on the option ‘Online form for furnishing TDS on property
4)Click on the option “TDS on sale of property

5)Fill form 26 QB which requires PAN of both buyer and seller , financial year for which tax is be paid. other details of property. Special attention is to be paid while quoting PAN or any other details as there is no mechanism for rectification of errors
6)On filling all the details in form 26 QB click on proceed button .
7)Next page will be confirmation page. After checking all the details again click on confirm button
8)On confirmation nine digit acknowledgement number will be generated. Save it for future reference
9)Then click on submit to the bank button .Deductee will have to login to the net banking sit .
10) Fill in the payment details
11)After successful payment challan will be generated.

Important points to be kept in mind

1)TDS will be deducted on whole sale condiration@1% . For example if sale value is Rs 70,00,000. TDS to be deducted is Rs 70000(1% of 70,00,000).
2)PAN of Seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
3)Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.
4)If amount of sale consideration is paid in installments TDS will be deducted on each installment.
5)TDS certificate ( FORM 16B ) issued by buyer to seller in respect of payment of TDS can be downloaded fromhttp://contents.tdscpc.gov.in/ using the acknowledgment number generated at the time of depositing TDS.